How to set the right prices for your beauty treatments
When deciding how to set the prices for your beauty treatments, there are several variables to consider, from individual costs to client demographics.
While looking at what your competitors charge can be useful to gauge an idea of what others are charging, simply following pricing of competitors can be a slippery slope into the realms of under charging and your business running at a loss.
Three considerations when pricing your treatments
1. Know your numbers
Before you even think about what to charge, it’s paramount that you know your numbers and the physical costs of every element of your business, otherwise you could easily be running at a loss.
Firstly, determine the cost of products to perform your treatment. Most brands will have a costing sheet or a programme for you to work out cost per use.
Ensure that you are using the correct amount of product in your treatments and not being over generous with how much is used. Remember, every pump of product is a cost to your business.
All other business expenses have to be taken into account as well. These include rent, lease or mortgage payments, all forms of liability insurance, professional memberships, laundry costs, lighting, utilities, heating, depreciation of equipment, uniforms, advertising, office supplies, (petrol, car insurance, car tax, if mobile).
Once you have a final monthly figure of expenditure, it can be divided down by the number of hours open in a month and then further divided down until you are left with an hourly figure.
2. Sell the experience, not the treatment
Therapists gain experience over time, which is beneficial when treating client concerns as it allows you to offer enhanced methods.
Over your duration in the industry, you will invest and update your skillset with CPD and by learning new techniques and treatments.
This should always be considered when setting pricing, as your education costs you money so if you are armed with more knowledge then you can better treat your clients’ needs.
Your knowledge, skill and experience enhance your service and the results that your client achieves.
Promoting and selling the experience your clients will receive from you with your repertoire of skills and enhanced service, rather than just the treatment, will help you stand out from the crowd.
3. Hourly rate of pay and profit margin
So many therapists fail to take a wage from their business. If you worked for someone, you would be paid so why would you not pay yourself in your own business?
Determine an hourly rate; this should be the national minimum wage at the very least. Don’t forget to include allowances for holidays, public holidays and possible sick days.
Next, you need to add your profit margin on to all treatments. This should be at least 10% on to the total to achieve return on investment and make your business efforts worthwhile.
While some of the numbers you will calculate may potentially not look attractive in comparison to your competitors’ prices, they will be a true reflection of what you offer and what you are worth, making them numbers of a true business and not just an expensive hobby.
Matt Taylor is brand and education manager at Eve Taylor London: 01733 260161
This is a sponsored feature in association with Eve Taylor London.